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That is false. $16.8B is greater than Melvin's AUM at the start of the year. The person in that video doesn't substantiate their claim either.

As a more general aside: take everything said on Cramer's show with a grain of salt. He is a deeply unserious character in the financial space. His angle is to be provocative, not accurate.




Do you have a citation you can offer up with more solid loss numbers? It looks like Melvin alone has lost at least $4.5 billion dollars on the GME short trade, and Citadel/Point72 provided ~$2.75 billion in capital to Melvin.

https://www.reuters.com/article/us-retail-trading-melvin/mel...


That is the citation. The person in that clip is speculating about Melvin's losses in particular.


Came across a citation that aligns closer to the $16.8B number quoted on the video citation I provide further upthread.

https://www.cnbc.com/2021/01/29/gamestop-short-sellers-are-s...

> Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer GameStop, according to data from S3 Partners.

Doesn't attribute losses to specific firms, but the damage is spectacular.


> That is false. $16.8B is greater than Melvin's AUM

losses on options contracts arent limited to invested capital. AUM is irrelevant


Yeah I'm aware of that, but Melvin is not bankrupt.


oh i get it, i thought you were saying the losses werent possible because it exceed their available captial. youre actually saying the losses arent possible because theyd be out of business.

i withdraw.


Yeah in fairness I could have worded that more precisely, but that's the idea :)




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